why sustainable biofuels? challenges and opportunities · 2009-03-16 · now time. new fuel supply...

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Why sustainable biofuels? Challenges and opportunities Challenge: Fuel price and availability Challenge: Greenhouse gas emissions COPYRIGHT © 2009 THE BOEING COMPANY Source: 2008 average annual oil price forecasts as of Sept 2008 (Global Insight, EIA) and June 2008 (Moody’s, IATA)

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Page 1: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Why sustainable biofuels?Challenges and opportunities

Challenge:Fuel price and availability

Challenge:Greenhouse gas emissions

COPYRIGHT © 2009 THE BOEING COMPANY

Source: 2008 average annual oil price forecasts as of Sept 2008 (Global Insight, EIA) and June 2008 (Moody’s, IATA)

Page 2: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Pursuing alternative fuels initiativesThe industry is pursuing different alternative fuels initiatives to address these challenges…and that’s ok!

CAAFI

Sustainable Aviation Fuel Users Group

COPYRIGHT © 2009 THE BOEING COMPANY

Page 3: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Focus on SustainabilityAre all biofuels equal? What are the best and worst sources?

COPYRIGHT © 2009 THE BOEING COMPANY

Page 4: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Sustainability considers: environmental, economic and social impacts

Lower CO2 lifecycleNo CO2

removed

CO2removed

Does not compete with food or promote

Petroleum-based fuel Plant-based fuel

Does not compete with food or promote deforestation

Promotes local and regional solutions and economies

COPYRIGHT © 2009 THE BOEING COMPANY

Page 5: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Commercial efforts underway viaSustainable Aviation Fuel User Group

GOAL: To help speed the creation of a viable market mechanism for sustainable biofuels.

Members are:

Driving commercial viability requirements Sustainability principle and monitoring in placeTechnology/agronomy in placeFuel processing technology in placeViable feedstock and processing developers in placeViable feedstock and processing developers in place

Using the power of their fuel spending dollars to ensure sustainability is a real requirement in the development of future aviation fuels

COPYRIGHT © 2009 THE BOEING COMPANY

Page 6: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Ensuring a sustainable approach to aviation biofuels

The user’s group pledges to consider only renewable fuel sources that –

require minimal land, water and energy to produce gy p

minimize biodiversity impacts don’t complete with food or

fresh water resourcesfresh water resources provide socioeconomic value

to local communities in cultivation and harvest ofcultivation and harvest of feedstocks

Group agrees to link with Roundtable on Sustainable

COPYRIGHT © 2009 THE BOEING COMPANYSustainability Pledge

Roundtable on Sustainable Biofuels Process

Page 7: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Viable and sustainable feedstock alternatives

AlgaeJatropha

Halophytes CamelinaCamelinaHalophytes CamelinaCamelina

COPYRIGHT © 2009 THE BOEING COMPANYViability is based on timing, technology and local resources

Page 8: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Commercially ViableyThe business case for sustainable aviation fuel

COPYRIGHT © 2009 THE BOEING COMPANY

Page 9: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Fossil Fuels mature

Long term trajectory of cost is importantFossil Fuels – mature technology chasing finite & diminishing supply.

CO

ST

Biofuels – emerging technology driving renewable & increasingdriving renewable & increasing supply

COPYRIGHT © 2008 THE BOEING COMPANY

TIMEnow

Page 10: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

New fuel supply models increase aviation fuel supplies

Fossil Fuel Model Sustainable Fuel Model

Integrated Oil

ProductionSustainableBiofuel Production

Individual Airline Fuel Demand

Individual Airline Fuel Demand

COPYRIGHT © 2009 THE BOEING COMPANY

Scale of biofuel production allows for new opportunities for air carriers

Page 11: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Aviation is uniquely structured to maximize benefits of sustainable biofuels

AviationRoad Transport AviationRoad Transport

Tens of thousands

Hundreds of millions of

Several hundred fueling stations

20,000 vehicles

COPYRIGHT © 2009 THE BOEING COMPANY

thousands fueling stations

millions of vehicles

fueling stations (airports)

vehicles

Page 12: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Technical and Fuel Requirements

Sustainable biofuels must provide near-term replacement solution

COPYRIGHT © 2009 THE BOEING COMPANY

Page 13: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Sustainable biofuels work in existing aviation infrastructure

Meets fuel performance requirements

Requires NO change to Requires NO change to airplanes or engines

Requires NO change to infrastructure

Can be mixed or alternated with Jet-A fuelalternated with Jet-A fuel

COPYRIGHT © 2009 THE BOEING COMPANY

Page 14: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Sustainable biofuels can exceed current jet fuel specification

Freezing point Elastomeric compatibility

Fuel requirements:

g pHigh temperature thermal stabilityEnergy densityStorage stability

Must be a replacement solutionMeet ASTM fuel specs Have a low CO2 footprint

Synthetic Paraffinic Kerosene (SPK) from a bio-derived source*

PropertyJet fuel

specification Bio-SPK performanceASTM Test

Method

Bio-jet A Bio-jet A1

Fluidityy

Freezing point, degrees Celsius max-40 Jet A

-47 Jet A1 -63 -69D 5972, D 7153,

D 7154, or D 2386

Combustion

Net heat of combustion MJ/kg min 42 8 44 4 43 2D 4529, D 3338,

or D 4809

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Net heat of combustion, MJ/kg min 42.8 44.4 43.2 or D 4809

Nearly 4% more energy content

23 degrees C lower freeze point

* Data provided by UOP

Page 15: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Achieving the GoalgDriving a viable market for sustainable aviation biofuels

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Page 16: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Sustainable biofuels can follow a similar adoption curve to wind energy

140140

100

120

gy u

sed Point of Market Viability

100

120

en

60

80

mou

nt o

f ene

rg

60

80

nergy used

20

40

Am

20

40

d

0

20

1998 2002 2006 2010 20160

20

2000 2004 2008 2012 2016

COPYRIGHT © 2009 THE BOEING COMPANY

Technology matured; financial markets became comfortable with investing

* Notional data

Page 17: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Accelerating fuel certificationCurrent

specificationAmended

specification

Amendment to include high-performing

D1655

sustainable biofuels

D1655

New specification will include high

performingperforming biofuels

Boeing is working to achieve certification of bio-spk fuels by 2010 by: Increasing airline participation in ASTM di ti fli ht d hi h t f d t

COPYRIGHT © 2009 THE BOEING COMPANY

coordinating flight demos, which generate performance dataWriting the technical fuel certification report which supports near term certification

Page 18: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Successful flight test program demonstratedbiofuel viability Demonstrated technical feasibility Identified sustainable biofuel sources Promoted development of viable commercial marketsPromoted development of viable commercial markets Demonstrated diverse engine / airframe combinations

20%Coconut &Babassu

Feb 2008

50%Jatropha

Dec 2008

50%Algae & Jatropha

J 2009

50%Camelina,

Jatropha & Algae

J 2009

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Feb 2008 Dec 2008 Jan 2009 Jan 2009

Increasing level of test objectives

Page 19: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Focus areas in commercial scale production

Gaps in critical market drivers are being addressed by Sustainable Aviation Fuel Users Group

120

140Independent, transparent Investment Commercial

0

20

40

60

80

100

1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008

transparent sustainability verification

Commercial scale

production projects

End-use by airlinesairlines

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Page 20: Why sustainable biofuels? Challenges and opportunities · 2009-03-16 · now TIME. New fuel supply models increase aviation fuel supplies Fossil Fuel Model Sustainable Fuel Model

Driving development of viable feedstocks

Sponsoring feedstock feasibility studies on jatropha, algae, halophytes

Connecting feedstock projects with financial itcommunity

Working with industry and NGOs to support sustainable feedstocks through public policysustainable feedstocks through public policy

Co-foundedAlgal Biomass OrganizationAlgal Biomass OrganizationSustainable Aviation Fuel Users Group

COPYRIGHT © 2009 THE BOEING COMPANY